Stochastic frontier analysis

By D. Scotti, N. Volta. Air Transport and Regional Development Methodologies, 2020

1,308 citations recorded by the source corpus.

Due to increased shrimp production costs and consequent final price, shrimp farmers in Hormuzgan province have lost their advantage in the domestic and international markets. In this connection, technical and economic efficiency enhancement can be a way to decrease shrimp cost price. In this study, using data envelope analysis (DEA) and an input-oriented model, technical and scale efficiency of 26 shrimp farms were measured in the province in the year 2006. Results show that 54% of shrimp farms are technically inefficient, while minimum and average pure technical efficiency are 0.69 and 0.92 respectively. Also, 77% of shrimp farms have scale inefficiency and minimum and average of scale efficiency were 0.59 and 0.90, respectively. In addition, 73% of the farms have increasing return to scale. As a result, shrimp production costs can be reduced even more using economy of scale.

View Paper: https://www.semanticscholar.org/paper/9e873bda1259c0957d3ea9e8f70110cbef38c5d1

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Citations in the corpus

Fair Enough? Food Security and the International Trade of Seafood (2015, unknown): “To better explain variation in the relationship between income (x) and seafood consumption per capita (q), we estimate a stochastic frontier model (Kumbhakar and Lovell 2000).”
Personal or Product Reputation? Optimizing Revenues in the Sharing Economy (2019, unknown): “In general, this methodological framework is widely used to compare different types of firms’ performances - productive efficiency, cost efficiency, revenue efficiency or profit efficiency - and to identify the determinants of inefficiencies (Kumbhakar and Lovell 2003).”
Stochastic non-smooth envelopment of data: semi-parametric frontier estimation subject to shape constraints (2012, methodology): “Other distributions such as gamma or exponential are also used for the inefficiency term ui (e.g. Kumbhakar and Lovell, 2000), but in this paper we restrict to the half-normal specification.”
The Role of Governance in Mobile Phones for Inclusive Human Development in Sub-Saharan Africa (2016, unknown): “To this end, many authors have employed double-censored Tobit models to control for the limited range of the dependent variable (Kumbhakar & Lovell, 2000; Koetter et al., 2008; Ariss, 2010; Coccorese & Pellecchia, 2010).”
Consistent inference in fixed-effects stochastic frontier models (2017, methodology): “Following Gouriéroux & Monfort (1991), under the regularity conditions ensuring the large sample properties of the MMLE, the resulting marginal maximum simulated likelihood estimator (MMSLE) is consistent and asymptotically equivalent to the MMLE as n→∞ and G→∞ with √ n/G→ 0.12 It then follows that”
Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries (2020, unknown): “Compared with traditional index number approaches, such as Fisher’s (1922) and Törnqvist’s (1936) productivity indices, SFA (parametric approach) and DEA (non-parametric approach) do not require price information or technical and behavioral assumptions [17].”
Is Bank Competition Detrimental to Efficiency? Evidence from China (2013, methodology): “9 See Kumbhakar and Lovell (2000) for further details on Stochastic Frontier Analysis.”
Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector (2013, background): “Also, it is worth noting that, as discussed in Schmidt and Lovell (1979) and in Kumbhakar and Lovell (2000), the difference between the observed input and the cost-minimizing input demand derived from a Cobb-Douglas production function, represents both technical as well as allocative inefficiency.”
The “wrong skewness” problem in stochastic frontier models: A new approach (2018, unknown): “Other choices, e.g., two-parameter distributions such as the gamma (Greene, 1990) or the truncatednormal (Stevenson, 1980) have been proposed; see Kumbhakar and Lovell (2000) or Greene (2007) for detailed surveys.”
Migration, local off-farm employment, and agricultural production efficiency: evidence from China (2015, unknown): “A few existing studies comparing the effects of different distribution assumptions on efficiencies have also shown that the distribution assumption is largely immaterial (Greene 1990; Kumbhakar and Lovell 2000).”
Persistent and transient productive inefficiency: a maximum simulated likelihood approach (2015, unknown): “See, for example, Kumbhakar and Lovell (2003) or Greene (2008).”
A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand (2015, background): “However, the conditional expectation E u is, by far, the most employed in the stochastic frontier analysis literature (see Kumbhakar and Lovell, 2000).”